HSN Eyes Nine Rose Bay Homes for $96m Midrise Play

Nine neighbouring homes in Sydney’s harbourside suburb of Rose Bay would be demolished for a $95.7-million nine-storey apartment block under plans before the state.

HSN Property Group’s state significant proposal relies on New South Wales’ Low and Mid Rise (LMR) housing provisions and in-fill affordable housing reforms.

It would deliver 54 apartments—including 13 affordable units—along with three levels of basement parking on the consolidated 2787.5sq m site at 2-16 Spencer Street.

On exhibition until December 1, the MHNDU-designed scheme replaces nine long-held homes with a mix of two, three and four-bedroom units.

The building would rise 28.6m and comprise 7968sq m of floor space, using the affordable housing pathway to increase its allowable area.

Plans include a residents’ lounge with kitchen, an outdoor garden and barbecue area, a lap pool, sauna and gym, plus storage areas and small shared breakout spaces on upper levels.

About 543.2sq m of the site would be set aside as deep soil for trees and planting, equal to 19.5 per cent of the land.

The design targets a minimum 20 per cent tree canopy in line with state guidelines.

▲ The proposed development site at 2-16 Spencer Street, Rose Bay.

The project covers nine lots in the R3 Medium Density zone—an area where apartments are permitted—measuring about 61m across the frontage and 46m deep.

Existing development includes a single-storey home at number 2, two-storey semis at 4 and 4A, a two-storey house at number 6, and semis at 10 and 12, and 14 and 16.

Planning documents said the site was about 361m from the Rose Bay town centre and within 400m of bus stops on Dover Road and Old South Head Road, allowing use of the LMR and in-fill affordable housing provisions.

Spencer Street ranges from Federation and Inter-War houses to two-storey contemporary homes and pockets of two and three-storey apartments, including newer buildings at 18-20, 22, 24-26 and at 3 and 5, according to planning documents.

Across the road at number 5 is Fortis’s Atlas project, also by MHNDU, which delivered 12 boutique homes on a 2223sq m site.

▲ MHNDU rendering of HSN Property Group’s proposed 54-apartment scheme at Rose Bay.

Community feedback on HSN’s proposal raised concerns about traffic, parking, excavation for the three-level basement, flooding, overshadowing and the impact of a nine-storey building in the street.

Residents also pointed to congestion on New South Head Road and Old South Head Road, the effect of 120 car spaces, safety in Spencer Lane, potential structural impacts from deep excavation, groundwater behaviour and flooding risks in Hamilton Street.

The project team responded with measures including revised parking to meet Housing SEPP rates, geotechnical and hydrogeological reporting, flood-planning compliance supported by a hydraulic model, updated landscaping to meet deep-soil and canopy targets and design changes to limit overshadowing and maintain solar access.

▲ Concept view by MHNDU illustrating the planned terraces and balconies across the building.

Since the state locked in the LMR reforms this year—extending higher-density housing near transport and local centres, including parts of Rose Bay—responses have been mixed.

The 12-home Wilberforce and Dover supersite at 32-38 Wilberforce Avenue and 41-55 Dover Road went on the market at $165 million, assembled within weeks of the reforms being finalised on February 28.

Five homes at 23-31 Dover Road also sold into the uplift, with Fortis paying $75 million for the row in a deal negotiated by Raine & Horne Double Bay.

Public reports show 23 Dover Road sold for $16 million after failing to attract offers at $8 million before the reforms.

Another pairing—574 and 576 Old South Head Road—traded off-market for about $15 million, while a larger amalgamation across 33-37 Dover Road and 20-30 Wilberforce Avenue changed hands for $150 million, reportedly to Pathways Residences for a future aged-care project.

But many long-term residents remain wary, citing overshadowing, excavation impacts, character loss and infrastructure strain.

The Woollahra Council has formally opposed the reforms, arguing they override its local planning controls.

Nearby, Orosi filed plans last year for a 50-residence scheme at 1 The Avenue, extending through 439-445 Old South Head Road opposite the Royal Sydney Golf Club.